A second debanking review revealed that NatWest has potentially violated Financial Conduct Authority (FCA) regulation.
After facing investigations from regulators and backlash for the closure of Brexit leader Nigel Farage’s Coutts bank account that led to the exit of CEO Alison Rose and Coutts exec Peter Flavel, the review has indicated breaches of regulatory rules. Rose’s £7.5 million payout following the scandal was also scrapped in November.
In initial findings, the FCA did not find proof of wrongdoing, however law firm Travers Smith analysed the closure of 84 Coutts’ accounts, a sample of 10% over a two-year period to July 2023, determining “serious failings” in its treatment of Farage in a report.
The report found that NatWest and Coutts might have violated FCA rules in customer treatment and reason for contract termination.
Mohammad Syed, chief executive at Coutts comments on the report’s release: "This report reaffirms that there were a number of shortcomings in our approach to account closures at Coutts and, in particular, in the quality and consistency of our communications. The experience of some of our customers fell short of what they should expect, and we apologise to them.
"We are committed to implementing all of the recommendations made by Travers Smith, including comprehensively reviewing and updating exit and communication processes, so that we deliver a better, more consistent experience for all our customers."